Used Cars: Buying used car, buying used car, bill of sale

Question
Hi Shane,
 I am planning to buy a used Nissan 2003 car from a private party. The problem is, I have applied for a loan and in order to get the loan approved I need to show the title in the name of the person i am buying from. but this person has not registered the car in his name but has the bill of sale document showing him as the buyer from that other person, so the title is still in the name of the original owner. The seller doesn't want to pay the sales tax and the registration cost. how do I proceed in such a situation? Please help.

Answer
It sounds like the seller is trying to "jump title" which is illegal in all states. Does your bank care what name the car is in or are they just making sure that there isn't a existing lien on the car. Most banks will only allow one lien on a title. However the person you are buying the car from is required to pay sales tax if he plans to resell the car. The only way around this is to pay cash. You have to pay your sales tax, why shouldn't the seller? Thanks for the question, Shane